The British Chambers of Commerce (BCC) has warned that the UK must take a more pro-active approach to the current economic slowdown in order to protect small business.

Economic adviser to the BCC David Kern says: "The worsening global financial crisis points to acute risks facing the global economy and the US is very probably in recession already. If the US downturn is severe, it is unrealistic to hope that Europe and Asia can escape the damaging consequences. In the face of the mounting crisis, the US has acted forcefully; it has cut interest rates aggressively and has introduced a fiscal package to try countering the threats to growth.

"The UK has so far reacted to the crisis in a more relaxed and laid-back fashion than the US. However, this attitude could prove to be dangerously complacent. The very severe declines in the US housing market are not seen at present in the UK. This said, it is important to remember that the UK economy is facing problems and imbalances that are similar to, and possibly worse than, those facing the US.

"British business has so far been remarkably resilient in the face of the financial crisis. While a UK slowdown is unavoidable, a UK recession can be avoided but both HM Treasury and the Bank of England must accept that countering the threat to growth is the overriding priority."